SNOW HILL — A slight drop in the poverty rate is pushing Greene County into a higher tier level, but officials believe it will prevent the low-wealth, rural county from receiving needed funding.

“A lot of the money we get is based on our tier status,” said Misty Chase, county coordinator for economic development, planning and grant opportunities.

The county was notified by phone, followed by a letter dated Nov. 30 from Dale B. Carroll, N.C. deputy commerce secretary.

As of Jan. 1, Greene County's status will move from a Tier 1 to a Tier 2 level, the letter states. Tier rankings, published each year, establish economic well-being with Tier 1 being most economically distressed. N.C. Commerce Secretary Keith Crisco announced the 2013 rankings Nov. 30.

“These tier rankings provide important tools that help attract and retain businesses in all parts of North Carolina,” Crisco stated.

A statutory formula is used to classify counties into three tier levels making tax credits available for economic development.

A number of factors are taken into consideration in establishing a county's tier status.

The county ranks 39 out 100 counties — with No. 1 being the most economically distressed — based on four factors: adjusted property tax base per capita, population growth, median household income and 12-month unemployment rate average.

According to the letter, Greene's property tax base and household income changed little in the last year. But, the unemployment rate worsened, while the population increased, moving the state to rank 39.

However, Greene's poverty rate was calculated for 2013 at 18.4 percent, less than the 19 percent that automatically qualifies counties with a population rate of less than 50,000 for Tier 1 status.

The poverty and population rates have kept the county in a Tier 1 status since 2007. This year, it ranked 38. But the poverty rate dropped from 20.2 percent to 18.4 percent, thereby increasing the county’s overall rank to 45 and moving it into Tier 2.

The tier system is used by a number of state programs to promote economic activity in low-wealth areas of the state.

Greene County Schools Superintendent Patrick Miller said the tier status, for the most part, doesn’t affect the school system.

“It doesn’t really eliminate any funding,” he said. “It eliminates us from being considered for (certain) grants.”

It could affect future Golden LEAF Foundation grants, such as the grants the school received for the Twilight and Young Scholars programs, which have ended or are ending shortly.

But district has $1 million of federal dollars to continue the Twilight program in the high school, Miller said.

“We’ll have to find dollars in our own budget to (extend Young Scholars),” he said.

The constant tier ratio is 40 counties in Tiers 1-2 and 20 counties in Tier 3. So if one county moves up, another has to move down.

“I just think it should be based on a standard,” Miller said. “It shouldn’t be a fixed number.”

The fixed numbers of counties in each tier create unrealistic status designations, he said.

Lenoir and Jones counties and 38 other counties remain or will qualify for Tier 1 status in January. There will be 40 counties in Tier 2 status, including Beaufort, Craven, Currituck, Dare, Duplin, Nash, Onslow and Pitt counties.

Twelve counties will change tier designations. Beaufort, Cleveland and Surry will move from Tier 1 to 2. Two counties are moving from Tier 2 to 3, while six counties are decreasing in tier status.

Chase said the county has asked the Commerce Department if there is an appeal process and was told there is none.

“It’s hard to comprehend that we’re not — I mean, I look at it that we’re rural and it’s hard to believe we’re not a Tier 1,” she said.

Tier rankings

Each year, on or before Nov. 30, the Secretary of Commerce shall assign to each county in the State a development factor that is the sum of the following. The counties rank by:

Average rate of unemployment from lowest to highest, for the most recent 12 months for which data are available

Median household income from highest to lowest, for the most recent 12 months for which data are available

Percentage growth in population from highest to lowest, for the most recent 36 months for which data are available

Adjusted assessed property value per capita as published by the Department of Public Instruction, from highest to lowest, for the most recent taxable year

In addition, counties with a poverty rate of 19 percent or above and a population below 50,000 are automatically designated as Tier 1